The Dow Chemical logo is displayed connected a committee supra the level of the New York Stock Exchange soon aft the opening doorbell successful New York connected Dec. 22, 2015. (Lucas Jackson/Reuters)
Dow Inc. connected Thursday forecast better-than-expected gross for the 4th fourth aft beating estimates connected higher prices crossed its concern pursuing a rebound successful economical enactment and choky supplies aft Hurricane Ida.
Demand for the company’s chemicals, utilized successful everything from integrative and nutrient packaging to textiles, electronics, and paints, has bounced backmost arsenic concern and automotive enactment recovers from pandemic lows.
Meanwhile, Hurricane Ida, which lashed the U.S. Gulf Coast successful August, forced Dow and different chemic makers to unopen immoderate operations, tightening already debased supplies and boosting prices.
“We proceed to spot robust end-market request that is expected to widen into 2022, coupled with near-term logistics constraints and debased inventory levels,” Chief Executive Officer Jim Fitterling said successful a statement.
Dow forecast fourth-quarter nett income of betwixt $14 cardinal and $14.5 billion, supra estimates of $13.53 billion, according to Refinitiv IBES data.
Still, the institution warned nett income successful its packaging and specialty plastics, coatings, arsenic good arsenic industrials unit, to beryllium level to down 3 percent, from the 3rd quarter, owed to higher earthy materials and vigor costs, arsenic good arsenic logistics constraints.
Overall prices climbed 50 percent successful the 3rd 4th from a twelvemonth earlier, portion measurement roseate 2 percent, Dow said connected Thursday
The company’s shares were up 1.5 percent astatine $60.82 successful premarket trading, acceptable to adhd to the astir 8 percent summation truthful acold this year.
Net operating income, which excludes definite items, roseate to $2.07 billion, oregon $2.75 per share, successful the 3 months ended Sept. 30, from $376 million, oregon 50 cents per share, a twelvemonth earlier. Analysts had estimated net of $2.55 per share.
Net income of $14.84 cardinal was supra estimates of $14.28 billion.